5 Back Office Risk Risk is bad, it costs moneyPotential losses are bad because you need to reserve expensive capital or pay for hedgesStandardized, verifiable metrics

6 Middle Office RiskRisk is neither good nor bad, it’s a dial you set to the appropriate level to accomplish your goalsMiscalibration is bad, neither actual nor potential losses matter in the long runEconomic capital

14 Where does this leave us?Unification is only possible in the context of a strategyEconomic capital is the only existing concept that spans front, middle and back officesUnification requires economic capital to become realAre we in a risk-based economic system?